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Handyman Special

Mark Cappel
UpdatedMar 29, 2024

If a house appraises for $26,000, but needs $25,000 in repairs, how much should I offer to buy it?

If a house appraises for $26,000 and it is said to need $25,000 in repairs to be livable. What is the true value I should offer the bank?

The real question is, "What is the value of comparable properties in the area?"

If the value of comps are in the $26,000 range, then you should pay $1,000 because the appraisal price is unrealistic and $1,000 is what the net value of the house is worth today.

On the other hand, if the value of comps are in the $50,000 to $60,000 range, then the appraiser had a great eye for spotting the existing damage and priced the house accordingly. If the comps are $51,000 or more, then $26,000 is a fair market value of the property.

For a longer discussion of valuing houses, see the Bills.com resource House Value.

I hope this information helps you Find. Learn & Save.

Best,

Bill

Bills.com

Mortgage market: a pulse check

It is expected that mortgage rates are subject to change. Homebuyers and those refinancing their mortgages should pay close attention to the latest mortgage rate

Mortgage rates February 21, 2024
According to Freddie Mac, the 30-year mortgage rate for the week of February 21, 2024 stands at 6.9%. This 13 basis points increase from the previous week's rate.
Additionally, Freddie Mac reports that the 15-year mortgage rate for February 21, 2024 is 6.29%, indicating a 17 basis points increase from previous week’s rates.
Note: A basis point is equal to one-hundredth of one percent (0.01%). In numerical terms, if the mortgage rate changes by 20 basis points, it means the rate has changed by 0.20%.

What does the mortgage rate mean for you?
Mortgage rates are one of the key factors that determine your monthly payment. Here are avergage interest rates (APR) for February 25, 2024 based on Zillow date for borrowers with a high credit score (680-740) in the United States:

  • 30-year conventional loan is 6.88%
  • 15-year conventional loan is 6.08%
    Using the rates mentioned above, the monthly payment for a $279,082 30-year-year mortgage would be $1,834. A 15-year mortgage would require a monthly payment of around $2,367.

Explore your options and secure pre-approval today!
To make your life easier, we highly recommend shopping around for mortgages and getting pre-approved. This will streamline the home-buying or refinancing process and make it a breeze. Ready to get started? Check Out mortgage rates now for the best options available.

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